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This monthly report leverages Cox Automotive’s multifaceted insight into the automotive marketplace to provide a one-page overview of economic indicators, supply, demand, credit and other vital topics and trends affecting the industry.
The CRM is a relatively recent addition to the automotive dealership, but it’s already revolutionized the way dealers connect with their customers. Every logged customer record, every report and every process gives dealers more information about their customers. And more information means a better chance to close the sale, along with better odds of customer retention.
But many dealers still struggle to use their CRM effectively. Some may have a good grasp of the basics, but in today’s industry, the basics aren’t enough to secure a competitive advantage. To get ahead, dealers must take advantage of more advanced CRM features and be committed to following effective, optimized processes.
A recent dealer survey conducted by a training and consulting firm evaluated the current state of CRM usage in the automotive industry. The survey examined both the industry’s average CRM usage and that of best-in-class dealers. Looking at the data, the results are clear: Most dealers’ CRM usage is in need of improvement. In fact, the automotive industry’s overall CRM performance at just 2 out of 5.
This white paper will provide key benchmarks that your dealership can use to evaluate your CRM usage across several key categories — along with concrete steps you can take to improve your performance and make better customer connections.
Customer retention is every dealership’s goal, but few have mastered a practical way to accomplish it. And that’s for a variety of reasons that have to do with modern customers and modern dealerships. Modern customers have many options for products and services besides your dealership, and it’s easy for them to be choosy. Modern dealerships have specific sales figures to hit; getting a sale from one customer takes effort enough. Getting a lifetime of sales from one customer can seem lofty and unlikely. Yet retention remains the surest way to drive sustainable revenue. Which brings us back to the question of how you can achieve it. The most practical and effective way to make customer retention a reality in your dealership is through loyalty programs. Loyalty programs allow dealers to make personalized connections with customers, build relationships that last, and boost overall retention metrics — assuming the programs are easy to execute without draining too much of your sales team’s time, and easy for your customers to take advantage of. Just one challenge remains: staying top-of-mind. When every customer has so many brands and so many options in front of them all the time, how do you make sure yours is the one that comes to mind when they’re ready to settle down with a consistent provider?
This white paper explains:
- Why customer retention is so challenging
- How loyalty programs help dealers stay top-of-mind with their customers
- What types of customer loyalty programs make the most sense for today’s dealers — and their pros and cons
- How to execute the right loyalty program for your dealership, and use the new insights you gain to convince customers to repurchase
A strong, stable team can make up the difference of narrowing margins and reduced gross by turning more inventory faster and improving customer retention